Gold falls below 19K level on weak global cues

Gold prices on Tuesday plunged by Rs 295 to Rs 18,850 per ten gram, snapping a four-day rally, in the bullion market here on heavy selling after a recent surge in the precious metal.

Silver also plunged by Rs 550 to Rs 29,600 per kg on poor offtake by industrial units and coins makers.

Marketmen said profit selling in tandem with a steep fall in gold prices in the international markets on Tuesday weighed on the market sentiment.

Fall in demand at existing higher levels also dampened the sentiment, they said.

The precious metal had risen to near record levels of Rs 19,145 per 10 grams after a four-day rally on the back of marriage season demand and strong global cues.

Gold in overseas markets, which normally set a price trend on the domestic front, recorded a steep fall of 23.90 dollar to 1,232.60 dollar an ounce. The metal earlier reached 1,266.50 dollar in New York, the highest price ever.

Standard gold of 99.9 purity and gold of 99.5 purity dropped by Rs 295 each to Rs 18,850 and Rs 18,750 per ten gram respectively. Sovereign followed suit and fell by Rs 75 to Rs 14,650 per piece of eight gram.

In line with a general weakening trend, silver ready dipped by Rs 550 to Rs 29,600 per kg and weekly-based delivery by Rs 575 to Rs 29,455 per kg.

Silver coins also fell by Rs 300 to Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.(PTI)